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The Tax Cuts and Jobs Act that was signed into law in 2017 has only begun to take effect this year—meaning this will be the first time it will impact your tax return preparation. To ensure your filing is accurate and that you’re taking advantage of all possible credits and deductions, consider consulting with a certified public accountant, whose job it is to keep on top of all these updates. In the meantime, some of these changes are discussed in general terms below.

How Will New Tax Laws Impact My Return?

1. Health Insurance Penalties Have Been Removed

The Affordable Care Act stipulated that all individuals must have health insurance in place, or they would incur a penalty when tax time rolled around. This recent act has removed that penalty, which means those without health coverage in 2019 are not to be penalized. However, when doing tax return preparation, keep in mind you can still be retroactively cited if you were without in 2018.

Tax Return Preparation2. Some Tax Payers Are Subject to New Deductions

Business owners and independent contractors may decrease their tax burden thanks to Schedule C. This form offers a qualified income deduction, which could lower taxes owed as much as 20%.

3. No More Personal Exemptions

Personal exemptions have been removed and replaced by higher standard deduction amounts. As a result, most families no longer find it necessary to utilize itemized deductions, which can be a laborious process. The child tax credit has also been increased, going from $1,000 in previous years to $2,000 in 2019. An accountant can help you determine whether you’ll save more money itemizing or if the standard deduction is right for you.

 

When it comes to tax return preparation, Joe Heard, CPA can help you make sense of new laws and codes. To his clients in Checotah, OK, this skilled accountant is the source of essential tax information and assistance and has been trusted in this role for the last 15 years. He offers a variety of services, including IRS representation, estate tax planning, and tax prep for businesses as well as individuals. Other services include business consulting and help with investments and retirement planning. Learn more about tax services by visiting the website. You can also call (918) 473-1492 to schedule an appointment today.

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